According to the reports, the CEO of Binance, Richard Teng, visited South Korea to iron out issues that have arisen regarding the entry of the company into the market. Teng sought to interact directly with the local financial regulatory authorities, among them the Financial Intelligence Unit (FIU).
His visit comes after Binance’s fight to gain entry into the South Korean market, especially with its acquisition of Gopax, a South Korean crypto exchange. The purchase that took place at the end of 2022 was planned to aid Binance’s penetration of the high-volume Korean market.
Binance faces delay in gopax approval
In spite of Binance’s struggle, the approval of Gopax’s change of virtual asset business report has been delayed by the financial authorities. The long-lasting delay hampers Binance’s intentions of entering the South Korean market.
The FIU’s reluctance to take the report of Gopax is in regard to Binance’s legal risk. A case in point is Binance, which has just suffered a huge $4.3 billion fine from the Department of Justice in the United States, thereby bringing into question its qualification as a majority shareholder.
In contrast to FIU’s position, Binance disclosed that it would sell parts of its shares in Gopax and give its majority stake over them. The FIU also requested that Gopax’s partner bank, Jeonbuk Bank, provide a plan to strengthen Gopax’s governance structure.
Gopax, on its part, initiated measures to decrease Binance’s stake, including requesting its users, known as ‘Gopai’ users, to convert their bonds into stocks. This move aimed to reduce Binance’s influence and allow GoFi users to increase their ownership.
Teng’s South Korea visit signals Binance’s resolve
Teng’s visit to South Korea underscores Binance’s commitment to finding a resolution to the challenges impeding its market entry. By engaging directly with financial authorities, Binance seeks to address concerns and pave the way for its operations in South Korea.
Despite the obstacles faced, both Binance and Gopax remain determined to navigate the regulatory landscape and establish a foothold in the South Korean market. The ongoing dialogue between Binance and South Korean authorities signifies a proactive approach toward achieving mutual understanding and compliance.
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